Boeing is cutting production of 737 Max jets. Following two crashes since October, Boeing has slashed its monthly production of its aircraft by 20% and is likely to produce only 42 a month instead of 52. This is part of the company’s adjustment in the 737 production system that aims to focus on software certification and returning the MAX to flight.
The analysts expect the production is likely to weigh on shares of the company. But, so far Boeing’s shares have held up relatively well after initially dropping to more than 10% in mid-March following the crash of an Ethiopian Airlines 737 Max 8. This second 737 crash in six months had led to a grounding situation for the aircraft.
At the time, Boeing did not feel the need to cut production. But the crashes also led to an evaluation as well as fixing of the aircraft’s software system, for which it’s likely to seek approval from FAA and other international evaluators in the coming weeks. This means that the grounding situation may well extend till June.
On November 01, 2024, the Stochastic Oscillator for BA moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 62 instances where the indicator left the oversold zone. In of the 62 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BA advanced for three days, in of 282 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on October 30, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BA as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BA turned negative on November 06, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 36 similar instances when the indicator turned negative. In of the 36 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BA broke above its upper Bollinger Band on October 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BA entered a downward trend on October 18, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (6.898). P/E Ratio (0.000) is within average values for comparable stocks, (48.753). BA's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.742). BA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.015). P/S Ratio (1.265) is also within normal values, averaging (4.305).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of jetliners, aircraft and related products
Industry AerospaceDefense